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The Board of Water Commissioners for the City of Detroit, Water and Sewerage Department authorizes the Director to approve DWSD Contract No. 6004332 to piggyback City of Detroit Contract 6002427 with Michigan CAT, a division of MacAllister Machinery Co., Inc., for as-needed construction equipment rental services for all DWSD facilities for a duration of 2 years and 6 months and a total amount not-to-exceed $320,000. This also authorizes the Director to take such other action as may be necessary to accomplish the intent of this vote.
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Agenda of April 20, 2022
Item No 22-0769
Contract No: 6004332
Contractor: Michigan CAT, a division of MacAllister Machinery Co., Inc.,
24800 Novi Rd., Novi, MI 48375
Contract Amount: $320,000
Contract Term: 5/1/22 - 11/18/24 (2 years & 6 months)
TO: The Honorable
Board of Water Commissioners
City of Detroit, Michigan
FROM: Gary Brown, Director
Water and Sewerage Department
RE: Proposed DWSD Contract No. 6004332
As-needed construction equipment rental services for all DWSD facilities
Michigan CAT, a division of MacAllister Machinery Co., Inc.
MOTION
Upon recommendation of Marqaicha Welch, Procurement Manager, the Board of Water Commissioners for the City of Detroit, Water and Sewerage Department authorizes the Director to approve DWSD Contract No. 6004332 to piggyback City of Detroit Contract 6002427 with Michigan CAT, a division of MacAllister Machinery Co., Inc., for as-needed construction equipment rental services for all DWSD facilities for a duration of 2 years and 6 months and a total amount not-to-exceed $320,000. This also authorizes the Director to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND / JUSTIFICATION
The DWSD Meter Operations and Maintenance & Repairs Divisions uses equipment such as front end loaders, bulldozers, backhoes, skid loaders and other equipment on a regular basis to assist in the repair and maintenance of underground water and sewer assets.
Due to equipment failures and repair times of DWSD owned equipment, there may be an extended period when the ability to have construction equipment rented and delivered to DWSD in a timely manner is critical to maintain daily operations in order to meet customer service levels and avoid health and safety issues. Therefore, Meter Operations and the Maintenance & Repairs Division is requesting to piggyback off of this City of Detroit contract.
PROCUREMENT METHOD
DWSD Meter Operations and Maintenance & Repairs teams are requesting to piggyback on an existing City of Detroit Contract 6002427. The Office of Contracting and Procurement issued Request for Bids (RFB) #19JW32852 for agricultural and construction equipment in 2019. The award to the lowest equalized bidder, Michigan CAT, was approved by City Council on 11/19/19. The contract will expire on 11/18/24.
DWSD Procurement has confirmed that the vendor has agreed to the request to piggyback off the City’s contract and also confirmed that the DWSD work will not significantly change, alter or remove from their ability to provide services to the City of Detroit.
This contract was initiated through requisition #495028 which was approved by Budget on 2/15/22. The vendor’s insurance is current, clearances are approved and expire 7/1/22.
Per DWSD procurement protocol, Mayoral Review will also be obtained.
SUMMARY
A. Contract Number: 6004332
B. Contractor: Michigan CAT, a division of MacAllister Machinery Co., Inc.
C. Contract Term: 5/1/22 - 11/18/24
D. Contract Amount: $320,000
E. Funding Source: O&M Funds
F. GL Strings:
5720-20167-482431-626435-000209-10680-0000-000000 - 40% Water
5820-20178-492431-626435-000230-15826-0000-000000 - 60% Sewer
G. Projected Fiscal Year (FY) Contract Expenditures:
FY 21-22: $50,000
FY 22-23: $135,000
FY 23-24: $135,000
This contract was presented to the BOWC Finance Committee on April 6, 2022. Per the DWSD Procurement Policy, Mayoral Review will also be obtained.